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First Principles of Business Law |
| The law of agency |
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10. Agency by operation of law |
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10.2. Shipowners, carriers and bailees |
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Read the facts below, and then answer the questions. A is the owner of a valuable racehorse which he keeps in Melbourne. He engages B to transport the horse to Sydney, instructing that the horse be delivered to C's stables in Sydney. But when B arrives with the horse in Sydney late at night, he finds that C's stables were destroyed by fire earlier that evening, and no-one is around to meet him. He tries to contact A by phone but, because it is so late, cannot reach him. B decides to take the horse to a stable owned by D, where D keeps and feeds the horse for a week until A collects the animal. |
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Does D have a right against A to be paid for the costs of looking after the horse on the grounds that, in the circumstances, B had authority to act for A when getting D to look after the horse? |
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